Midsize talent constraints are becoming margin constraints

LAWCLERK frames the 2026 legal talent shortage around midsize firms that face tight legal unemployment, Big Law salary pressure and slow lateral-hiring timelines. Its economics are blunt: a first-year associate can cost $180,000 to $220,000 before recruiting fees, while understaffed midsize firms may turn away 15% to 20% of potential matters because they cannot scale capacity quickly.

M&A, PE & Consolidation